If you’re like most people, you’ll hardly be able to resist the ads? After all and advert that welcomes you to lease the car that you desire for just about $200 and very little money down must be an offer that is too good to pass up. It doesn’t take a soothsayer to see why leasing has become so popular especially for those people who can’t afford to get a new car themselves or who can’t afford to upgrade to a model that they really want.
When you look at things on a surface level, a car leasing offer tends to look too good to be true and when you look at the reality of things. It often is. A lease might get you a better car but it is not necessarily a good deal. Expect you need a short-term car arrangement for work or for your schooling needs, leasing will cost you more in the long run than buying your own vehicle.
What are some of the disadvantages of leasing? Check these out and see:
- When you continue to rollover car leases , the payments will never end. This is because you never really get to own the vehicle.
- Limited Mileage- Taking out a lease offers you a limited period and distance in a year, which a car can be driven. If you go over these limits, you’ll end up paying extra at the end of your car lease period.
- The vehicle must be kept in tip-top shape – You must carry out scheduled maintenance on a regular basis. The responsibility for payment on any scratches, dents, spots, stains and general wearing that occurs in and outside the vehicle, is yours to pay for at the end of the lease.
- There’s no backing out. As soon as you have signed a lease agreement, you’re bound to hold the agreement until it expires. If something happens and you find out that you have to get out of the lease before its expiration, you should plan on paying very hefty termination fees and penalties.
- Depreciation Hurts- The truth is that all cars start to lose their value as soon as they are driven off a car lot but leased vehicles are affected all the more because payments are so low; this removes the chance of getting any equity in the vehicle. If the ability to trade it in at the end of a lease period seems like a good thing, think of what will happen if the car gets in an accident. The insurance company will only be responsible for paying estimated value on the costs of the car and not the entire lease payoff- this sticks you with the bill. Options for purchasing alternative leasing insurance also exists for a particular price.
- When it ends, you have no car – Most leases have a typical period of 2-5 years, the average period of a car lease is usually 36 months. This means that after three years, you’ll have to lease another vehicle. This means another down payment and a different payment schedule. Whenever you buy a car, you can least take some time out in order to find a replacement.
- You’re stuck with what they have. Getting customized options with leased vehicles is usually out of the question. You are strictly restricted to selecting the available color and options that they have and this may not be what you want.
Leasing is a great option for some people but the thing is you have to understand the advantages and disadvantages before you run out to a dealer to lease any kind of vehicle.
